Taxes

[Fruitloops1]

This is my first year doing taxes as a daycare provider. I am meeting with a tax adviser Friday and I am trying to write down a list of questions but I am drawing a blank. I am not filing my taxes Friday but I am meeting with someone so I can begin to prepare to file soon. Any questions I should be asking?

[LaLa1923]

This is my first year doing taxes as a daycare provider. I am meeting with a tax adviser Friday and I am trying to write down a list of questions but I am drawing a blank. I am not filing my taxes Friday but I am meeting with someone so I can begin to prepare to file soon. Any questions I should be asking?

Do they know who Tom copeland is? If they don't, move on

[TomCopeland]

Questions for tax preparer

This is my first year doing taxes as a daycare provider. I am meeting with a tax adviser Friday and I am trying to write down a list of questions but I am drawing a blank. I am not filing my taxes Friday but I am meeting with someone so I can begin to prepare to file soon. Any questions I should be asking?

There are many tax rules that are unique to family child care. To make sure your tax preparer understands your business, here are some key questions to ask:
1) Should I depreciate my home? (Yes, always)
2) May I count in my business use of home calculation (Time-Space %) hours spent on cleaning, activity preparation and other business activities when children are not present in my home? (Yes)
3) May I deduct food as a business expense for meals and snacks not reimbursed by the Food Program? (Yes)
4) May I depreciate the furniture and appliances I owned before I went into business? (Yes)

If your tax preparer disagrees with these answers consider using a different tax preparer, unless the person is willing to better understand your business.

[MarinaVanessa]

PS: I do what Tom recommends in his book Record Keeping Guide and give my copy of the book to my tax preparer as reference when I turn in my paperwork to be filed .... just in case.

[Fruitloops1]

PS: I do what Tom recommends in his book Record Keeping Guide and give my copy of the book to my tax preparer as reference when I turn in my paperwork to be filed .... just in case.

Funny how you mentioned that book. My fiance just literally dropped it on my desk because it came in the mail today.

Thanks for all the responses.

[Fruitloops1]

There are many tax rules that are unique to family child care. To make sure your tax preparer understands your business, here are some key questions to ask:
1) Should I depreciate my home? (Yes, always)
2) May I count in my business use of home calculation (Time-Space %) hours spent on cleaning, activity preparation and other business activities when children are not present in my home? (Yes)
3) May I deduct food as a business expense for meals and snacks not reimbursed by the Food Program? (Yes)
4) May I depreciate the furniture and appliances I owned before I went into business? (Yes)

If your tax preparer disagrees with these answers consider using a different tax preparer, unless the person is willing to better understand your business.

Just a quick question about question #1. My daycare is in my fiance's building and I rent out one of the floors for the daycare. I pay rent for just that space which is 100% daycare. Does that depreciate if it isnt really "my home"?

[Michael]

We are scheduling another webinar with Top Copeland on Tuesday, February 12, 2013 at 8:30-10:00pm Eastern Time. I will have more information available tomorrow for those that want to register. We usually get 50 or more members joining in for questions. This year, we really need Tom's help.

[Fruitloops1]

We are scheduling another webinar with Top Copeland on Tuesday, February 12, 2013 at 8:30-10:00pm Eastern Time. I will have more information available tomorrow for those that want to register. We usually get 50 or more members joining in for questions. This year, we really need Tom's help.

Thank you! I saw that yesterday. It is saved in my calendar. 7:30 Chicago time!

[Abigail]

The only thing I don't like about depreciating things I owned before daycare began was that they said each item costs money because they use a different sheet for depreciating everything. 99% of my daycare is completely separate so I'm not concerned about depreciating our furniture or table as the daycare kids don't really use it. I use the space personally for daycare or have an infant in the room with me but the daycare kids who are older typically never enter the upper-half of our home.

How do you depreciate the house?

[TomCopeland]

Questions for tax preparer

Just a quick question about question #1. My daycare is in my fiance's building and I rent out one of the floors for the daycare. I pay rent for just that space which is 100% daycare. Does that depreciate if it isnt really "my home"?

You can't depreciate this home because you don't own it. You can deduct the rent, but your fiance must report this as income on Schedule E. He can claim depreciation on the rented building! Once you get married you can claim depreciation even if you name is not on the deed. Do it now!

[TomCopeland]

Depreciation

The only thing I don't like about depreciating things I owned before daycare began was that they said each item costs money because they use a different sheet for depreciating everything. 99% of my daycare is completely separate so I'm not concerned about depreciating our furniture or table as the daycare kids don't really use it. I use the space personally for daycare or have an infant in the room with me but the daycare kids who are older typically never enter the upper-half of our home.

How do you depreciate the house?

Here's an article I wrote about depreciating your home: http://www.tomcopelandblog.com/2011/...your-home.html

My book Family Child Care Tax Workbook has a chapter showing exactly how to claim home depreciation.